PepsiCo (Photo credit: Wikipedia)
According to your text, unethical managerial behavior tends to be driven by factors such as “overzealous or obsessive pursuit of personal gain, wealth, and other selfish interests; a company culture that puts the profitability and good business performance ahead of ethical behavior; and heavy pressures on company managers to meet or beat performance targets.” Pursuing unethical strategies not only damages a company’s reputation; it can have costly consequences.
The Journal of Ethics (Photo credit: Wikipedia)
Read this: The PepsiCo Code of Conduct/Ethics statement: http://www.pepsico.com/Company/Global-Code-of-Conduct.html
Ethical issues include:
- The search for universal values as a basis for international commercial behavior.
- Comparison of business ethical traditions in different countries. Also on the basis of their respective GDP
- Comparison of business ethical traditions from various religious perspectives.
- Ethical issues arising out of international business transactions; fair trade movement; transfer pricing.
- Issues such as globalization and cultural imperialism.
- Varying global standards regarding the use of child labor.
- The way in which multinationals take advantage of international differences, such as outsourcing production and services like call centrers to low-wage countries.
Foreign countries often use dumping as a competitive threat, selling products at prices lower than their normal value. This can lead to problems in domestic markets. It becomes difficult for these markets to compete with the pricing set by foreign markets. Dumping is often seen as an ethical issue, as larger companies are taking advantage of other less economically advanced companies.
1. Why is Good Ethics, Good Business?
2. Describe your firm’s “Code of Business Ethics.”
3. Why should a company encourage Whistle Blowing?
4. What is corporate stewardship of the natural environment?
Social responsibility involves the company’s duty to operate in “an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.
The company should pursue an environmental sustainability strategy that “meets the current needs of customers, suppliers, shareholders, employees and other stakeholders in a manner that protects the natural environment, provides for the longevity of natural resources, maintains ecological support for future generations and guards against the ultimate endangerment of the planet.”
